As President Donald Trump was telling the media that he would not buckle to China for the sake of striking a deal, there was a bit of a different story coming from Chinese President Xi Jinping, who may now be much more willing to surrender to Trump’s terms.
During a recent news conference, the Chinese president seemed to beg for Trump to let up on the trade war, saying, according to CNBC, that “the right solution lies in consultation and cooperation.”
“All problems would be settled in the spirit of equality, mutual understanding and accommodation,” he added.
Starting to buckle
Many financial experts heard those words from Xi and realized that the tariffs Trump has been hitting the Chinese with are starting to take their toll.
Trump was actually bragging about them before a trip to Texas this week. The president said that the country is raking in billions from the Chinese and will continue to so until a fair trade deal is worked out.
Xi claimed the two sides are coming closer, but there is still some distance that must be closed before Trump will be willing to sign any deal.
Then, of course, the deal has to get through our Congress, which does not seem willing to approve anything Trump wants these days.
Ironing it all out
When Trump first took office, the massive trade deficit with the Chinese is something that he regularly discussed. As part of the new deal, it has been reported that Trump is demanding that the Chinese significantly increase their purchases from American farmers.
If Trump is able to secure these terms, it would be a huge victory, because this issue is one that Democrats regularly attack Trump over. The trade war has hurt some of our farmers, but the short term difficulties were touted as necessary to secure long-term fruition.
In the meantime, Trump has been trying to help farmers by ensuring more purchases by the federal government to make up for lost business.
Meanwhile, Xi’s recent comments had an undertone of panic in them, so this trade deal may not be quite as far away as some pundits are predicting.
If and when it happens, it will be a huge victory for this administration — and it will make it even harder for Democrats to unseat Trump come 2020.